Balancing the territory of an organization has many contributing factors. For a brand or business to be successful, its territories need to be able to offer future sales potential to the business development team. As the region is established, it is essential to have some economic stability that will further allow sales to compete with other successful businesses.
Sales Territory Balancing can be appropriately achieved by setting up new territories that have more or equal market value.
Rethink existing areas and make changes accordingly to increase market value.
Territory balancing is not something you would do once. It is a continuous and ongoing process that is altered based on sales data and changes according to market values. The primary factor that acts as a key is how responsive the organization is against competitors over a geographical area. Otherwise, the territories tend to get unbalanced and are soon unable to take advantage of given opportunities or to compete with other businesses that are in the race for more profits.
People often tend to make many mistakes when it comes to balancing the sales in a territory. For example, half of the reps are working in a busy urban area while the other half are working in a rural area with a minimum of a mediocre amount of sales opportunities. Under these circumstances, the organization will not flourish nor will the business development reps be successful.
There are, however, few factors that you need to be entirely clear about:
- The level of prospective return within the selected territory based on demographics and geographic segmentation, meaning how significant the market potential is.
- How can the sales be managed in the area concerning the time required to travel, make transactions, and customer appointments?
- How much sales the market has made in reality with a specific territory as compared to the industry standards.
- How profitable the territory is and how much potential does it hold to expand in 10 to 15 years.
Balancing the sales among territories and the representatives covers any gaps and boosts morale by creating an environment of positive competitiveness. Without a balanced sales territory, the organization fails not only on a commercial scale but also within the business development team.
To learn more about how GeoMetrx can help balance sales territories for your organization, contact us.